site.btaExperts Discuss Effects of Eurozone Membership on Competitiveness and Investment

The impact of Eurozone membership on competitiveness and investment was the focus of a national discussion titled “The Effect of the Eurozone: Lessons from Member States”, held on Friday at the Council of Ministers in Sofia. The forum was organized by the Economic and Social Council of Bulgaria and is part of the country’s Communication Strategy for Information and Publicity of Bulgaria's Accession to the Euro Area.

Daniela Bobeva from the Institute for Economic Research at the Bulgarian Academy of Sciences highlighted the benefits of increased transparency in business operations. “Data shows that it will become much more difficult for businesses to operate in the grey economy. Prices themselves don't rise, someone raises them. Why? Businesses need to understand that raising prices may cost them their competitiveness,” Bobeva said.

The Secretary General of the Bulgarian Industrial Capital Association, Milena Angelova, emphasized that Eurozone membership would slow Bulgaria’s debt accumulation. According to her, the most recent countries to adopt the euro experienced only minimal inflationary effects.

Stanislav Popdonchev, Deputy Chair and Chief Financial Officer of BIA, underscored the importance of implementing measures to protect the most vulnerable groups in society.

Sonya Dimitrova, Head of the European Affairs and Policies Directorate at the Ministry of Finance, said that eurozone accession would lead to an upgrade in Bulgaria’s credit rating and make the country more attractive to investors.

Marinela Petrova, an adviser at the Bulgarian National Bank, addressed some practical concerns related to timing and euro cash availability. “If businesses forecast accurately, there should be no issue with euro liquidity,” she said. Petrova reminded that businesses are required to return change in euros during the dual currency circulation period—unless they have no euro cash on hand, in which case an exception can be made.

The discussion panel was moderated by Georgi Simeonov, Co-chairman of the Tax and Legal Committee at the Confederation of Employers and Industrialists in Bulgaria.